European stocks fell after China’s latest weakening of its currency refreshed concerns about the outlook for global growth.
The Stoxx Europe 600
Index slid 1.3 percent to 354.35 at the close of trading, its lowest
level since Dec. 14. Commodity producers and carmakers -- among the
sectors with most sales exposure to China -- led declines. Tuesday’s
rebound from the worst-ever start to the year was short-lived: Europe’s
equity benchmark is down 3.1 percent this week amid signs that China’s
slowdown is worse than anticipated.
The yuan fell to the
lowest level since at least 2011 after China’s central bank set the
currency’s reference rate at an unexpectedly weak level. The move is
reminiscent of last August’s devaluation, which stunned financial
markets worldwide and sparked a selloff that saw the Stoxx 600 tumble as
much as 18 percent from its record. Investors are also watching
geopolitical developments after North Korea claimed to have successfully
tested its first hydrogen bomb.
Source: Bloomberg
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